Battered SAS to revamp intra-European product

[Mystere IV A]

Star Alliance carrier Scandinavian Airlines (SAS) is to revamp its service concept for intra-European flights in April, building on the overhaul of its short-haul Scandinavian operations last year.
SAS says that it is planning to unveil the new concept in mid-March but is not revealing any specific details ahead of time.
"We've looked over our product on the ground, the pricing, and the product on board" says a spokesman for the airline. "In some areas we will be making larger changes than in others."
He says that the carrier is reviewing its intra-European service to align it with changing demands in the market.
While not giving specific details of the airline's plans, the spokesman says that it is committed to retaining two-class service on its European routes.
Last year the carrier, which is battling to overcome continuing financial pressures, introduced a new in-flight service concept branded 'Scandinavian Direct' which eliminated the two-class configuration on intra-Scandinavian flights - part of a strategy to address the loss of business-class traffic since September 2001.
The spokesman claims that this product has proved successful, although the airline is still experimenting with the in-flight service in order to overcome some less-favourable passenger reactions.
SAS is also claiming success in its drive to attract more Internet-based bookings; the spokesman says that the airline is heading rapidly towards having 50% of its bookings taken on-line.

Fly High :windsock:
:pilot_2:

[Adam_Blomquist]

Scandinavian Direct - successful??! Geeeez - never had so many complaints in my life by pax! I mean; who wants peanuts and coffee in a paper cup on a 2hr flight?!

[Adam_Blomquist]

By the way, dunno if that was what the article also talked about; but SAS is launching this "new" airline Scandinavian Lite soon - to fly with "no frills" standards from Scandinavia to Southern Europe.

Anybody heard how it went with Continental when they launched their Continental Lite to compete against Southwest?! I have... I.e. Continental Lite doesn't exist anymore!!! Managers here at SK obviously hasn't learnt from that; because Scandinavian Lite is based on exactly those same principles...

Just for your interest, babes!

[SwissJumbolino]

I agree with you. Continental Lite almost killed CO. I don't think any major airline has ever founded a successfull low-cost airline. Go (formed by BA) only had success once they were sold to the 3i Group. Shuttle by United was discontinued, and I doubt Delta will make it with its new "Song" brand.
Air Canada is not doing too bad with ZIP and Tango, but that's because there isn't much competition in Canada (AC accounts for about 70 pct of the traffic there).
Anyway, I really hope this will not put SAS more in trouble than it is already in now.
---------------------
http://www.swiss.com/sw-oc-fl-rj100-low.jpg

[Adam_Blomquist]

It so seems like a panic move; that's all....! As if there aren't enough no-frills airlines that fly Scandinavia-Southern Europe. I'm so gonna try and get out of those legs using our PBS...

Working Scandinavian Lite won't go with MY image at all...! :shocked: (mouth is open, lips separated... just waiting for the good thing to happen.. LOL)

[Nordic]

Tjena Adam,

Do you know if SK will actually use the name "Scandinavian Lite" or not? I've heard it was only a working name, but we are rapidly approaching the launch date, and I haven't heard anything.

[Swissmiss]

I've heard this too. I wish my old company well and hope it works out. I miss my old SAS. :frown_2:

[Adam_Blomquist]

Hey blue-eyed blondie (=Nordic!)
You are quite right... it's not gonna be branded as "Scandinavian Lite" - but honestly not quite sure what they're doing about it. Maybe it's just gonna be the good old SAS - but that's so a risk to take. From a marketing perspective (see, I hold my Bachelor degree in commerce!), it could end up in a disaster - mixing up the image of SAS in people's heads, i.e. a perception issue.

On the other hand, I dunno why newspapers have used the term Scandinavian Lite - and if it comes from SAS' corporates, they so live up to the image of blondes! How silly!

[GB737]

Full-service airlines really never have done well with launching their own low-cost airlines, because most of the time there is no innovative thinking behind them.
Usually, the mainline airline will simply re-spray the planes with a new design, take out business class and reduce economy service to drinks only or having to pay for any amenities. Sometimes, the same union agreements apply to the high-cost and inhouse low-cost airline.

I know it didn't work to well, but I'd say the only exception is Go. The airline from day one never used anything from BA (besides safety procedures, crew training and some managers) and had their own bases, airplanes and their manager Barbara Cassani had a free reign over the airline.

SAS could well do the same, using Malmo or Skavsta as a tertiary base like BA and GO/STN.

Just my $0.02

[Ryanair]

Ryanair, are expected to announce that we are broadening our attack on the European aviation market with the opening of our first operating base in Scandinavia at Stockholm-Skavsta airport.

Skavsta, about 60 miles south of Stockholm, will be the airline's fourth operating base in continental Europe and will become part of its rapidly expanding network, aimed at making Ryanair the largest short-haul airline in Europe within five to six years.

The group is expected to announce this week that it will also be developing its presence in the German market, launching to Airport Niederrhein in north-western Germany. Niederrhein, which is being developed as a civil airport on the site of a former UK fighter base close to the Dutch border, is scheduled to open in May.

Ryanair is expected to base three or four aircraft at Skavsta with the opening of a network to several European locations.

These are likely to include the existing services to London Stansted and Frankfurt-Hahn as well as Paris-Beauvais, Glasgow-Prestwick and destinations within the Nordic region.

I would see this as a great opportunity for SAS to launch Lite here, because Skavsta will eventually become the Scandinavian Stansted!